Does anybody know how it is that buying pressure or selling pressure is figured? Is there a formula out there?
If price is moving up- you have buying pressure. If price is moving down - you have selling pressure. That simple.
I'm done for the day here, having caught the reversal trade at 1202. By the way for those who give a damn about it. Reversal days are not that hard to anticipate (especially for the S&P market). Put up a chart using 15 or 30 min bars and scan left. This is a market that cycles back and forth. Look for previous wide range bars and you will start to see the patterns appear. Actually it is not "that simple". If you use the search function, you will notice that there are some valuable articles on this subject posted in the past. In addition to actual transactions, bids and cancelled bids, offers and cancelled offers also signify "pressure". Some sharp professionals have developed profitable systems by analyzing how bids/offers and cancellations affect price movement. Here in this office, we have a person trading a system that uses the ratio of bids/offers to actual transactions. Sorry I can't say more about it. Good luck in your search. Lefty.
Lefty, not to be argumentive, but buying / selling pressure is that simple. What you're trying say, as I understand it, is a method of determining a "sign of strength" or "sign of weakness". If that is the case, then I agree with you about not being so easy.
Perhaps this is a question carried over from from a previous discussion on another thread? That might explain how a question about "pressure" got answered with a "reversal day". No matter, I don't much like participating in a wandering thread anyways. later..
Yes I agree, it is much more important to stay focused than to learn something new. I will remove the posts.
Lefty, don't listen to these guys. Imho, you are right on. Very valuable stuff and I've found the same thing very useful myself. --Stephen
It seems to me that when a market moves quickly with with force and strong volume it is exhibiting a greater buying pressure than a market that slowly moves, covering the same distance but over a longer time frame. Now ... how do you quantify that phenomenon?